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Selling into international markets
UNB Fredericton| October 23, 2012
A BIT ABOUT ME…
• B2B STARTUP FOUNDER
• STARTUP MENTOR
• UNB GRADUATE
How best to sell into international
           markets?




                              http://www.flickr.com/photos/gianpierre_soto/5505817770/sizes/l/in/photostream/
Income & Population Density (2011)
                                                                                                                                                              International Markets




 DESIGN: DAVID WHITMORE; GRAPHICS: JOHN GRIMWADE GRAPHICS; RESEARCH: KAITLIN M. YARNALL; TEXT: JANE VESSELS; EDITORIAL RESEARCH: MAUREEN J. FLYNN, JULIE A.
IBINSON, DAVID A. LANDE; PRODUCTION: LAWSON PARKER; GRAPHICS SOURCES: POPULATION REFERENCE BUREAU, UNITED NATIONS, WORLD BANK; CONSULTANTS: CARL HAUB
                     (POPULATION REFERENCE BUREAU), HANS ROSLING (GAPMINDER); MAP DATA: OAK RIDGE NATIONAL LABORATORY LANDSCAN 2009 (POPULATION DENSITY)
$2.7-billion      $6.0-billion
  1991 Revenues       2011 Revenues
Conseros Software
100% Export Revenues
Operations in 3 countries
International Markets
Are the cornerstone of growth | Risk Mitigation
Not “if”, but “when & how”
Most strategic question for any organization & its founder.
When
Is the right time to grow beyond domestic borders?
Timing is Everything
•   Start in the market where you have understanding & influence
•   Least expensive method of validation (customer, product, model)
•   Focus on execution: work out all issues before scaling
Before taking that first step
•   Get customer references & case studies
•   Ensure a repeatable sales model
•   Prove the business model
Having these in place provides
leverage to launch internationally.
Knowing when to hit the gas pedal is key.
Scaling too quickly can spell disaster.
                                            http://www.flickr.com/photos/lanier67/4047779644/sizes/l/in/photostream/
Ready to launch
What is the best strategy for growing beyond domestic borders?
Direct to Market                     Indirect via Channels
 Company sells its products and         Company employs a third party, a
 services „directly‟ to its client or   reseller or distributor to sell their
customer base without an outside         products on to their customers
         party involved
Direct to Market
•   Offers the highest degree of control & focus to the company
•   Best for complex products & services or where relationships are key to sales
•   Comes at a cost: fixed & variable
Direct to Market
•   Don‟t underestimate local and regional customs
•   Business regulations, including employment and taxation
•   Corporate structure complexities
Indirect via Channels
•   In-market expertise & relationships
•   Immediate scale
•   Comes at higher variable cost, but little to no fixed
Indirect via Channels
Be selective & ensure mutual value add




                                         http://cdn.api.warnerbros.com/WB_Portal_3.0/imageRequest?rendition=SmallThumbnail&contentId=087194
Charting the Right Course
For international expansion
Strategic Decision
Market Share | Revenues | Future Acquisition
                                               http://www.flickr.com/photos/uckhet/268319752/
The Answer is Both
Direct & Indirect Model
                          http://www.flickr.com/photos/kellbailey/1805414461/
Early Adopters
Best acquired through a Direct Model
                                       http://www.flickr.com/photos/aressa/3299022830/sizes/l/
How best to sell into international
           markets?




                              http://www.flickr.com/photos/gianpierre_soto/5505817770/sizes/l/in/photostream/
Contact Me:
   E-Mail: jthompson@about.me
   Twitter: @thomjeff




Some of the photographs in this presentation were retrieved from Flickr and made available under a Creative
Commons license. Please refer to each photograph for a link to the image source.

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Selling in International Markets

  • 1. Selling into international markets UNB Fredericton| October 23, 2012
  • 2. A BIT ABOUT ME… • B2B STARTUP FOUNDER • STARTUP MENTOR • UNB GRADUATE
  • 3. How best to sell into international markets? http://www.flickr.com/photos/gianpierre_soto/5505817770/sizes/l/in/photostream/
  • 4. Income & Population Density (2011) International Markets DESIGN: DAVID WHITMORE; GRAPHICS: JOHN GRIMWADE GRAPHICS; RESEARCH: KAITLIN M. YARNALL; TEXT: JANE VESSELS; EDITORIAL RESEARCH: MAUREEN J. FLYNN, JULIE A. IBINSON, DAVID A. LANDE; PRODUCTION: LAWSON PARKER; GRAPHICS SOURCES: POPULATION REFERENCE BUREAU, UNITED NATIONS, WORLD BANK; CONSULTANTS: CARL HAUB (POPULATION REFERENCE BUREAU), HANS ROSLING (GAPMINDER); MAP DATA: OAK RIDGE NATIONAL LABORATORY LANDSCAN 2009 (POPULATION DENSITY)
  • 5. $2.7-billion $6.0-billion 1991 Revenues 2011 Revenues
  • 6. Conseros Software 100% Export Revenues Operations in 3 countries
  • 7. International Markets Are the cornerstone of growth | Risk Mitigation
  • 8. Not “if”, but “when & how” Most strategic question for any organization & its founder.
  • 9. When Is the right time to grow beyond domestic borders?
  • 10. Timing is Everything • Start in the market where you have understanding & influence • Least expensive method of validation (customer, product, model) • Focus on execution: work out all issues before scaling
  • 11. Before taking that first step • Get customer references & case studies • Ensure a repeatable sales model • Prove the business model
  • 12. Having these in place provides leverage to launch internationally.
  • 13. Knowing when to hit the gas pedal is key. Scaling too quickly can spell disaster. http://www.flickr.com/photos/lanier67/4047779644/sizes/l/in/photostream/
  • 14. Ready to launch What is the best strategy for growing beyond domestic borders?
  • 15. Direct to Market Indirect via Channels Company sells its products and Company employs a third party, a services „directly‟ to its client or reseller or distributor to sell their customer base without an outside products on to their customers party involved
  • 16. Direct to Market • Offers the highest degree of control & focus to the company • Best for complex products & services or where relationships are key to sales • Comes at a cost: fixed & variable
  • 17. Direct to Market • Don‟t underestimate local and regional customs • Business regulations, including employment and taxation • Corporate structure complexities
  • 18. Indirect via Channels • In-market expertise & relationships • Immediate scale • Comes at higher variable cost, but little to no fixed
  • 19. Indirect via Channels Be selective & ensure mutual value add http://cdn.api.warnerbros.com/WB_Portal_3.0/imageRequest?rendition=SmallThumbnail&contentId=087194
  • 20. Charting the Right Course For international expansion
  • 21. Strategic Decision Market Share | Revenues | Future Acquisition http://www.flickr.com/photos/uckhet/268319752/
  • 22. The Answer is Both Direct & Indirect Model http://www.flickr.com/photos/kellbailey/1805414461/
  • 23. Early Adopters Best acquired through a Direct Model http://www.flickr.com/photos/aressa/3299022830/sizes/l/
  • 24. How best to sell into international markets? http://www.flickr.com/photos/gianpierre_soto/5505817770/sizes/l/in/photostream/
  • 25. Contact Me: E-Mail: jthompson@about.me Twitter: @thomjeff Some of the photographs in this presentation were retrieved from Flickr and made available under a Creative Commons license. Please refer to each photograph for a link to the image source.